Bjorn Bergabo, GE. Deloitte Shared Services, GBS & BPO Conference

Transcription

1 Deloitte Shared Services, GBS & BPO Conference Plenary 5: GE Enabling Business Agility - building an 8,000+ strong multifunctional shared services organisation in 3 years Bjorn Bergabo, GE September 2016 Lisbon, Portugal #DeloitteSharedServices

2 GE Global Operations Enabling business agility at GE Bjorn Bergabo, General Manager, GE Global Operations Europe, Russia & CIS September 2016 Imagination at work

3 GE Today DIGITAL INDUSTRIAL: Leading a new productivity revolution GREAT PORTFOLIO: Solving big global problems GE STORE: Foundation for world-class performance VALUE: Win in the market, build with investors CULTURE: Simplification for customer outcomes

4 GE is transforming Consumer Divest Financing Industrial Invest + Disrupt Alstom Digital Appliances Capital GE Aviation GE Power Renewables GE Digital Synchrony GE Transportation GE Energy ConnectionsThermal Predix GE Healthcare GE Oil & Gas Grid Vertical Finance GE Lighting Culture + Transformation The first Digital Industrial company

5 The Digital Transformation How we are evolving Increased opportunities for software-defined everything; & data as a revenue generator New Business Models GE Digital Wind Farm Current, powered by GE Speed of change requires months to days, scalability Cloud-based Platform Predix Industrial Internet Operating System Building on current IT investments and assets Convergence of IT & OT GE Digital

6 How we think about Simplification Our goal Different at GE Lean management + Competitiveness + Commercial intensity + Digital capability + Culture Changes GE s cost structure to sustain investment while growing margins FastWorks: Process driven/it Test + learn Product cost/margin Excellent customer experiences better commercial operations, responsiveness, regional speed Fewer ERPs and more reliability distributed leadership and shared services Facilitate the remake of GE into a leaner, innovation-driven company Simplification is a company shift Scarcity drives teamwork, accountability & prioritization Outcompeting based on speed; everything is on the clock Global share "Front-end" margins Improved project margins Support SG&A goals Global productivity. Improve risk management Focus on Performance Development. Annual reviews replaced with regular and more often touchpoints and feedback, in addition to a brief annual summary.

7 GE s shared services opportunity Simplify structure and process Shared benefits today 18.5% SG&A cost out (Industrial SG&A % of sales ex-bd) 17.5% 15.9% 14.0% ~12% Revenue + O2C leads, inside sales, collections + Documentation channels, contracts + Analytics customer 360, leads + Compliance Know Your Customer '11 '12 '13 '14 '16F ERP 90% Shared Services 65% Process Unit Cost 50% Centers of Scale 60% Proven model valuable Resource Allocation Gross Margins SG&A + Infrastructure facilities, IT + Cycle time sourcing, customs + Leverage deflation + Compliance Know Your Supplier, contracts Transactional + Common Process cost, quality, speed + Scale + leverage lean structure + Analytics data, metrics, insights + Capacity Beyond SG&A Enterprise wide

8 The GE Store Our competitive advantage Where does Global Operations fit in? Shared Services is a critical enabler of the company s simplification efforts. In Global Operations, we bring our process and domain expertise to create capacity in the GE Businesses. HEALTHCARE Diagnostics technology a firstmover and anchor in growth markets AVIATION Advanced materials, manufacturing, and engineering productivity t POWER Combustion science and services, installed base GLOBAL GROWTH ORGANIZATION GE DIGITAL CULTURE & SIMPLIFICATION Global Operations GLOBAL RESEARCH CENTER ENERGY CONNECTIONS Electrification, controls and power conversion technology RENEWABLE ENERGY Sustainable power systems and storage By centralizing support services from 6 global functions into one framework, we re taking a wing-to-wing look across GE to streamline and standardize Company processes and ensure consistent quality. LIGHTING LED is gateway to energy efficiency TRANSPORTATION Engine technology and localization in growth regions OIL & GAS Services and technology a first-mover in growth regions

9 Global Operations Achieving our targets GE: ~65% of enabling functions will be Shared Global Operations will Deliver~50% of Shared, with 80% to Standard, and 60% in a Center, = $1.2B Opportunity Global Team Multi-functional Centers 4.75K 10-15K 4-7K Local Sites Commercial Finance Supply Chain 3.2K 1.8K 6-8K Centers HR IT Legal/EHS Enterprise Data Tax Asia: Pudong, China Europe & Russia/CIS: Budapest, Hungary Latin America: Monterrey, Mexico US/Canada: Cincinnati, Ohio

10 Network of Centers and Sites, supported by Global Delivery Teams Regional Centers Regional, captive, multi-functional services, leveraging common infrastructure Scale to operate large processes and volumes Business process expertise & productivity Work is not location dependent Regional Operations Center Local Sites GDT Global Delivery Teams (GDT) Multi or single region process work Scale and concentration of expertise enable productivity Location enables benefits from local labor market and/or proximity to key global stakeholders Creates capacity and provides business continuity option for Regional Centers Local Sites Regulatory or functional requirement for work to be done in country or at a specific location Non-scalable work that requires local coordination Leverage local knowledge or expertise

11 Who we are Today What we do Global team Deep multi-functional expertise Shared Services Maturity Service Offerings Level 1 Level 2 Level 3 2x 10-15K 25 Local 4-7K Sites 12 8K Resources 2.5K 4.8K 3.2K 6-8K Centers Diversity + Experience 99 nationalities; 39 languages spoken; 62% female operating in 81 countries 2,287 Bachelors degree + 2,631 Masters, Doctorate or JD 61 CPAs or equivalent 106 CAS graduates; 602 leadership program grads 1,577 Quality trained Proud of Global Operations; proud of GE

12 How we are using data Operating reviews done on live dashboard

13 What we are playing for brand new world New way to Work Horizontal / Flat organization Experiment with new ideas Passionate about problem solving Learn how to be vulnerable Contemporary Leadership Always have the teams back Walk in others shoes & empathize 99 nationalities & 39 languages ~700 from Leadership Programs 62% female Global & Diverse Make decisions based on data Op reviews using digital dashboard & no power point Democratize information Embracing Digital age

14 Organizational overview Global Functional Leadership Regional + Business Leadership Enables acceleration Global Process Owners Regional Operating Leaders Enabling Process architects, Own functional councils & Enterprise Standards Own operations, Optimize Global design, Locally accountable Accelerate migrations, Global governance design, Continuous improvement Shared Functional Finance, HR, Compliance, Communications, Legal, IT Execute with minimal structure to create business capacity & enable growth

15 GE Global Operations 3 years in Silo d teams Process variation Customized by business needs Individual task simplification 82K account reconciliations eliminated 80% reduction in Customer onboarding process (KYC) 35% reduction in legal entities 70M clicks eliminated from HR Enterprise standards defined Global Operations Centers opened Multi-functional scope Embracing FastWorks Growth Board Creating capacity in the GE Store 15% B2P unit cost reduction on 16MM invoices 15% reduction in facilities spend Overhead reduction from 30% - 10% on path to zero Driving competitive advantage for the GE Businesses The journey of Global Operations Fully operationalized network of Centers and sites 55% in Centers Multi-functional, integrated teams delivering wing-to-wing processes Living the GE Beliefs Partnered with the businesses to create GENIUS + MyGlobalMetrics $340MM of annualized indirect deflation with supplier negotiation as OneGE $35MM annual revenue for GEHC through telemarketing I M P A C T

16 Global Operations Center, Budapest Countries Covered years On board promotion rate YTD Female talent Training hours Gen Y Nationalities Languages Enabling GE growth

17 GE Global Operations Center, Budapest GE was awarded the Company of the year for Regional Shared Services Centers for 2014 in Hungary by the Ministry of Foreign Affairs & Trade and Hungarian Investment Promotion Agency

18 GE United & Toastmasters 20+ Events 45+ members 30+ Languages 40+ Participants Enhancing Public Speaking Skills Through Toastmasters GE Volunteers participants 35+ Nationalities 80 Active Members All Day Diverse Programs Women s Network & Working Parents Program Initiatives #godigital Raising Digital Awareness #gemyconnection Women & Technology #gewnexternal Future Wings - Giving children access to professional role models Working Parents #geworkingparents Initiative started at GE in Hungary 200+ participant s for Working Parents Day HealthAhead & GLBTA Participants To Date! Sport Day 17 competitive and non competitive activities HA Day 20+ healthy events & medical checks and screenings GCC Challenge 100day competition BuildOn Raising funds to build a school in Nicaragua 2nd 68% 4.6yr s Poorest country in Latin America Live on little more than $1 per day Average length of schooling The Power of Culture Awareness Campaign Forest Saving Adopt a Village Project Ambassadorship Horse Therapy

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